On August 20, 2024, the Electric Reliability Council of Texas (ERCOT) reached 85.6 gigawatts (GW) of peak demand—a new record— without issuing a single conservation call.
This was a sharp contrast from the previous year, in which 11 conservation calls were made, reflecting the impact of nearly 14 GW of combined new solar and storage capacity and cementing renewables’ role as critical grid resources in ERCOT.
ERCOT’s unique market design creates a wealth of opportunities for renewable energy developers. Scarcity pricing can reach $5,000 per megawatt-hour (MWh) during supply shortages, with growing demand for frequency regulation services. In ERCOT’s rapidly evolving landscape, market participation strategies and technical considerations must be carefully planned to capture value.
This guide provides developers and EPCs with actionable strategies for navigating ERCOT’s complexities and securing premium market positions.
Inside, you will find:
- Analysis of ERCOT’s energy-only market design, scarcity pricing dynamics, and ancillary service revenue opportunities.
- Case studies of solar + storage projects comparing ERCOT and CAISO markets.
- Practical design and revenue-stacking guidance tailored to ERCOT’s unique price patterns and market signals.
- Strategic frameworks for navigating ERCOT’s interconnection process, transmission congestion, and other development challenges.
- Integrated approaches for managing market volatility, regulatory shifts, weather-driven demand risks, and reliability mandates in Texas.